Euler Hermes, one of the worldes largest providers of trade credit insurance, plans to underwrite gross premiums worth more than 1.5 million euros this year through its Romanian office.
"Euler Hermes group currently has an exposure (risk undertaken i.e.) of one billion euros on the Romanian market through all its international offices. Through the Romanian office, 650 risks and a total exposure of 64 million euros have been covered," Cristina Rusuleanu, general manager with Euler Hermes Romania, told ZF.
The company is specialised in providing receivables insurance both in the case of sales of goods and services, as well as in the case of exports, on condition that there should be a certain time interval between freight delivery and payments. "Euler Hermes decided to tackle the Romanian market back in 2003. At that time, it decided to enter the market through Allianz-Tiriac, which already had a licence on the market and was part of the same Allianz group," said Rusuleanu. She explained the companyes partnership with Allianz-Tiriac Asigurari ended in January 1st, 2007 in the wake of services market liberalisation and due to the fact that EU companies are now able to issue policies from their country of origin.
"We will continue to operate as a limited liability firm on the Romanian market and we will be like an arm of Euler Hermes Germany," she added.
Euler Hermes Germany is one of the 50 firms of the EU that notified the Insurance Surveillance Commission about its intention to operate on the Romanian market directly from its country of origin.
Euler Hermes policies cover customerse exposure not only to a single business partner, but to the entire portfolio of the insured firm. In deciding on the insurance premium, the level of insured turnover, as well as the repayment terms, respectively the average receivable payment interval, are of significant importance. Depending on these factors, premiums may range between 5,000 and 60,000 euros.
Euler Hermes does not target only large companies, but also SMEs, with the domestic customers of the insurer having turnovers ranging between 2 and 100 million euros.
"In Romania, the number of companies sealing trade credit insurance contracts make up less than 1% of the market, while on other markets where companies are more familiar with this concept, the coverage is much bigger. (...)," Rusuleanu also said.
Euler Hermes has 9 employees and a single office in Romania and is considering opening a second office in the western region of the country, depending on the trend of demand in that area.
The company is part of Allianz Group and monitors more than 40 million companies internationally.
Euler Hermes
One of the biggest providers of trade credit insurance obally
Plans to underwrite gross premiums worth above 1.5m euros through its Romanian office this year
Entered the Romanian market in 2003 through Allianz-Tiriac
Has nine employees and a single office in Romania
Is considering opening a second office in the western region of the country, depending on the evolution of demand
Monitors over 40 million firms internationally
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